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About earnst n young

  1. 1. Ernst & YoungFrom Wikipedia, the free encyclopediaJump to: navigation, searchErnst & Young (EY)Ernst & Young Corporate Logo.svgTypeMember firms have different legal structures, USA and UK: Limited LiabilityPartnershipIndustryProfessional servicesFounded1989; individual components from 1849HeadquartersLondon, United Kingdom[1]Area servedWorldwideKey peopleJim Turley (Chairman & CEO)[2] Mark Weinberger (Chairman & CEO-elect)[3]ServicesAssuranceTax AdvisoryConsultingFinancial AdvisoryOtherRevenueIncrease US$ 24.4 billion (2012)[4]Employees170,000 (2013) [5]DivisionsAssurance, Advisory, Tax, TransactionsWebsiteEY.comErnst & Young (EY) is one of the largest professional service firms in the worldand one of the "Big Four" accounting firms, along with Deloitte, KPMG andPricewaterhouseCoopers (PwC).Ernst & Young is a global organization of member firms with 167,000 employees inmore than 140 countries, headquartered in London, England.[6] It was ranked by
  2. 2. Forbes magazine as the eigth-largest private company in the United States in2011.[7]Contents[hide] 1 History 1.1 Early history1.2 Mergers1.3 Recent history2 Global structure3 Services4 Name and branding5 Staff6 Criticisms 6.1 Equitable life6.2 Anglo Irish Bank6.3 Sons of Gwalia6.4 Akai Holdings6.5 Lehman Brothers6.6 Bally Total Fitness7 Sponsorship 7.1 Sports sponsorship8 Notable current and former employees 8.1 Business8.2 Politics and public service8.3 Other9 See also10 References11 External links[edit] History[edit] Early historyEY offices in WarsawErnst & Young is the result of a series of mergers of ancestor organizations.The oldest originating partnership was founded in 1849 in England as Harding &Pullein.[8] In that year the firm was joined by Frederick Whinney. He was made apartner in 1859 and with his sons in the business it was renamed Whinney Smith &Whinney in 1894.[8]In 1903, the firm of Ernst & Ernst was established in Cleveland by Alwin C.Ernst and his brother Theodore and in 1906 Arthur Young & Co. was set up by theScotsman Arthur Young in Chicago.[8]As early as 1924 these American firms allied with prominent British firms, Youngwith Broads Paterson & Co. and Ernst with Whinney Smith & Whinney.[8] In 1979this led to the formation of Anglo-American Ernst & Whinney, creating the fourthlargest accountancy firm in the world.[8] Also in 1979, the European offices ofArthur Young merged with several large local European firms, which became memberfirms of Arthur Young International.[edit] MergersIn 1989, the number four firm Ernst & Whinney merged with the then number five,Arthur Young, on a global basis to create Ernst & Young.[9]In October 1997, EY announced plans to merge its global practices with KPMG to
  3. 3. create the largest professional services organization in the world, coming onthe heels of another merger plan announced in September 1997 by Price Waterhouseand Coopers & Lybrand. The merger plans were abandoned in February 1998 due toclient opposition, antitrust issues, cost problems and difficulty of merging thetwo diverse companies and cultures.[10]EY had built up its consultancy arm heavily during the 1980s and 1990s. The U.S.Securities and Exchange Commission and members of the investment community beganto raise concerns about potential conflicts of interest between the consultingand auditing work amongst the Big Five and in May 2000, EY was the first of thefirms to formally and fully separate its consulting practices via a sale to theFrench IT services company Cap Gemini for $11 billion, largely in stock,creating the new company of Cap Gemini Ernst & Young, which was later renamedCapgemini.[11][edit] Recent historyIn 2002, EY took over many of the ex-Arthur Andersen practices around the world,although not those in the UK, China or the Netherlands.[12]In 2006, EY became the only big four to have two member firms in the UnitedStates with the inclusion of Mitchell & Titus, LLP, the largest minority-ownedaccounting firm in the United States.[13][14]In 2010, EY acquired Terco, the Brazilian member firm of Grant Thornton.[15]In 2013, EY agreed to pay federal prosecutors $123 million to settle criminaltax avoidance charges stemming from $2 billion in unpaid taxes from about 200wealthy individuals advised by four Ernst & Young senior partners between 1999and 2004.[16][edit] Global structureEY is the most globally managed of the Big Four firms. EY Global sets globalstandards and oversees global policy and consistency of service, with clientwork being performed by its member firms.Each EY member country is organised as part of one of four areas.[17] This isdifferent from other professional services networks which are more centrallymanaged.EY Global Talent Hub in Bangalore, India (A major office in the EMEIA region).The four areas are:EMEIA: Europe, Middle East, India and AfricaAmericasAsia-PacificJapanEach area has an identical business structure and one management team that isled by an Area Managing Partner is part of the Global Executive board. The aimof this structure is to effectively cater for an increasingly global clientele,who have multinational interests.[edit] ServicesEY has four main service lines and share of revenues in 2011:[18]Assurance Services (46%): comprises Financial Audit (core assurance), FinancialAccounting Advisory Services, Fraud Investigation & Dispute Services, andClimate Change & Sustainability Services.Tax Services (26%): includes Business Tax Compliance, Human Capital, Customs,
  4. 4. Indirect Tax, International Tax Services, Tax Accounting & Risk AdvisoryServices, Transaction Tax.Advisory Services (19%): consisting of four subservice lines: Actuarial, IT Riskand Assurance, Risk, and Performance Improvement.Transaction Advisory Services (TAS) (9%): deals with companies capital agenda –preserving, optimizing, investing and raising capital.[edit] Name and brandingThe firms name arises from the global merger between Ernst & Whinney and ArthurYoung in 1989.[8] The motto of the firm is "Quality In Everything We Do".[19][edit] StaffErnst & Young was ranked No. 1 in the Forbes Magazines The Best AccountingFirms to Work For in 2012, claiming that EY treats its employees better thanother big firms.[20]The firm was ranked No. 1 in BusinessWeeks annual list of Best Places To Launcha Career for 2008.[21]The firm was ranked No. 44 in the Fortune list of 100 Best Companies to WorkFor, and the highest among the Big Four, for 2009.[22]Ernst & Young was ranked 4th in Universums Americas Ideal Employers list2011[23] and 3rd in its Global Top Employers list.[24]The firm was No. 34 in ComputerWorlds 100 Best Places To Work For In IT for2009.[25]The firm was also placed among the top 50 places in the Where Women Want to Workawards for 2007.[26]The firm was named as one of the 10 Best Companies for Working Mothers byWorking Mothers magazine in 2006.[27]In April 2009, Reuters reported that Ernst & Young launched an initiativeencouraging its staff in China to take 40 days of low-pay leave between July2009 and June 2010. Those who participate get 20 percent of regular salary plusbenefits of full-time employee. It applies to employees in Hong Kong, Macau andmainland China where the firm employs 8,500 in total.[28]In early 2012, it was reported that Ernst & Young has 10,000 staff in mainlandChina and Hong Kong, which has quadrupled in a decade. It has about 11,200 staffin the UK.[29]In 2012, the firm was ranked number 1 in the Stonewall Top 100 WorkplaceEquality Index, a list of Britains top 100 gay-friendly employers. In 2013, thefirm was ranked number 6 in the same Workplace Equality Index. [30]In the year 2013, Fortune Magazine ranked it among the 100 best companies towork for.[31][edit] Criticisms[edit] Equitable lifeIn April 2004, Equitable Life, a UK life assurance company, sued EY after nearlycollapsing following a House of Lords judgement that it had to pay guaranteedannuities held by its policyholders. Equitable claimed that EY neglected itsduty as auditor and demanded £2.6bn in compensation. Equitable abandoned thecase in September 2005 and each side agreed to pay their own legal costs. EYdescribed the case as "a scandalous waste of time, money and resources for allconcerned."[32]
  5. 5. [edit] Anglo Irish BankIn January 2009, in the Anglo Irish Bank hidden loans controversy, EY wascriticised by politicians[33] and the shareholders of Anglo Irish Bank forfailing to detect large loans to Sean FitzPatrick, its Chairman, during itsaudits. The share price fell by almost 99% and the Irish Government had tosubsequently take full ownership of the Bank.[34][35] The Irish CharteredAccountants Regulatory Board appointed John Purcell, former comptroller andauditor general, to investigate into the "circumstances around the issue ofinappropriate directors loans at Anglo Irish"[36] and into the performance ofits auditors, EY.[37][38] EY said it –fundamentally disagrees– with the decisionto initiate a formal disciplinary process." and that "there has been no adversefinding made against Ernst & Young in respect of the audit of Anglo Irish Bank."[39][edit] Sons of GwaliaOn 4 September 2009, EY, the former auditors of Sons of Gwalia, agreed to a$125m settlement over their role in the gold miner–s collapse in 2004. FerrierHodgson, the companys administrator, had claimed EY was negligent over theaccounting of gold and dollar hedging contracts. However, EY said that theproposed settlement was not an admission of any liability.[40][edit] Akai HoldingsOn 11 October 2009, EY reached a legal settlement where they agreed to payUS$200 million to the liquidators of Akai Holdings. It was alleged that EYfalsified court documents to avoid negligence charges which led to policeraiding the Hong Kong office.[41][edit] Lehman BrothersThe Valukas Report by bankruptcy court examiner, Anton R. Valukas, issued on 11March 2010,[42] charged that Lehman Brothers engaged in a practice known as repo105 and that Ernst & Young, Lehmans auditor, was aware of it. New Yorkprosecutors, headed by Governor-elect Andrew Cuomo, announced on 21 December2010[43] that they have sued the firm for fraud charges related to repo 105 andthe collapse of Lehman Brothers. The firm said that its last audit of LehmanBrothers was for the fiscal year ending 30 November 2007 and that, Lehman–sfinancial statements were fairly presented in accordance with Generally AcceptedAccounting Principles (GAAP).[44][45][46]In 2010 EY, in a letter to the firms key clients, defended its audit work forLehman Brothers.[47] In June 2012 the Accountancy & Actuarial Discipline Boardconcluded that no action should be taken against Ernst & Young or anyindividuals in connection with the auditing of the Wall Street firm before itcollapsed in September 2008.[48][edit] Bally Total FitnessFollowing allegations by the Securities and Exchange Commission (SEC) that Ernst& Young had committed accounting fraud in its work auditing the books of BallyTotal Fitness, Ernst & Young reached two settlements, in 2008 for concernsrelated to the period 1997 and 2003 and in 2009 for the period of 2001 to 2003.The latter settlement included an agreement to cease and desist from violatingsecurities laws and a fine of $8.5 million which was at the time among thehighest such settlements that an accounting firm had ever paid the SEC.[49][edit] SponsorshipErnst & Youngs publicity activity includes its worldwide Entrepreneur Of TheYear program, run in 50 countries.[50]
  6. 6. EY UK also publicizes itself by sponsoring exhibitions of works by famousartists, such as Cézanne, Picasso, Bonnard, Monet, Rodin and Renoir. The mostrecent of these was Maharaja: the Splendour of Indias Royal Courts at theVictoria and Albert Museum.[51]In addition, EY publicizes itself by sponsoring the educational childrens showCyberchase on PBS Kids under the PBS Kids GO! television brand, in an effort toimprove mathematics literacy in children.[52]EY sponsors the ITEM club.[53][edit] Sports sponsorshipOn 8 September 2011, Rio 2016 made the announcement that Ernst & Young will be atier 2 official sponsor of the XXXI Olympic Summer Games to be held in Brazil,as the exclusive provider of professional services – consulting and auditing –for Rio 2016 organizing committee.[54] Ernst & Young also has a longstandingrelationship with the 2011 Tour de France winner Cadel Evans.[55][edit] Notable current and former employees[edit] BusinessArthur Blank–co-founder of Home Depot, owner of the Atlanta FalconsJim Balsillie–co-CEO of Research In Motion (1992–2012)Andrew Gould–Chairman and former CEO of Schlumberger (2003–2011)[56]Ed Grier–Dean of VCU School of Business, Former President of the DisneylandResort (2009–present)Chris Kubasik–COO of Lockheed Martin (2001–2012)Sean Wise–venture capital commentatorPatricia A. Woertz–CEO of Archer Daniels Midland (2006–present)Michael T. Strianese–CEO of L-3 Communications (2006–present)Karan Bilimoria, Baron Bilimoria–Founder of Cobra Beer[edit] Politics and public serviceJan Peter Balkenende–Prime Minister of the Netherlands (2002–2010)[57]John B. T. Campbell III–Member of the U.S. House of Representatives(2005–present)Jun Choi–Mayor of Edison, New Jersey (2006–present)Christopher Chope–Member of the British Parliament (1983–92; 1997–present)Sheila Fraser–Former Auditor General of Canada (2001–2011)Cheryl Gillan–Member of the British Parliament (1992–present)Edward H Ntalami–CEO at his Kenyan Capital Markets Authority (2002–present)John Howell–Member of the British Parliament (2008–present)Hugo Schiltz–Belgian Senator (1992–1995)Jeff McWaters–Member of the Virginia State Senate (2010–present)Tin Pei Ling-Member of Parliament for Marine Parade GRC, Singapore(2011–present)[edit] OtherKimberly Clarice Aiken Miss America 1994Geneviève Brame – authorJeff Moss (born c. 1975) founder of the DEF CON and Black Hat technologyconferences and member of the Homeland Security Advisory CouncilJoyce Carol Vincent[58] - employee in London, notable for the circumstances ofher unexplained death[edit] See alsoPortal icon Companies portalAccounting networks and associationsProfessional services networks[edit] References
  7. 7. 1.^ "Facts & Figures". Ernst & Young. 30 June 2011. Retrieved 8 December 2011.2.^ "Ernst & Young: Jim Turley". Ernst & Young. Retrieved 9 July 2011.3.^ [1]. Ernst & Young. Retrieved 23 April 2013.4.^ "Ernst & Young". Ernst & Young. Retrieved 2 October 2012.5.^ Ernst & Young difference: high-performing teams delivering exceptionalclient service - Ernst & Young - United States6.^ "Facts and Figures". Ernst & Young. Retrieved 21 February 2013.7.^ DeCarlo, Scott; Murphy, Andrea D. (3 November 2011). "Americas LargestPrivate Companies". Forbes. Retrieved 3 February 2012.8.^ a b c d e f "Ernst & Young – History". Ernst & Young. Retrieved 9 July 2011.9.^ "Reports Say Arthur Young and Ernst May Merge". The New York Times. May1989.10.^ "Accountancy Merger Off". BBC News. 23 February 1998. Retrieved 9 July2011.11.^ "Cap Gemini to Acquire Ernst & Young Consulting Business". The New YorkTimes. March 2000.12.^ "Ernst & Young Acquires Anderson India". Findarticles. 8 April 2003.Retrieved 9 July 2011.13.^ "Maintaining a Diverse Culture". Ernst & Young. Retrieved 9 July 2011.14.^ "Mitchell & Titus Joins Ernst & Young Global as a Member Firm". Prnewswire.Retrieved 9 July 2011.15.^ Grant Thornton confirms departure of Brazilian member firm Grant Thornton,3 August 201016.^ Bowers, Simon (3 March 2013). "Ernst & Young to pay US regulators $123mover tax avoidance schemes". The Guardian. Retrieved 23 March 2013.17.^ "Ernst & Young Consolidates Global Structure". Webcpa. Retrieved 9 July2011.18.^ "Facts and Figures". EY Global Review. Retrieved 4 February 2012.19.^ Ernst & Young Website. Ernst & Young. Retrieved 9 July 2011.20.^ "The Best Accounting Firms to Work For". Forbes. Retrieved 27 April 2012.21.^ "BusinessWeek: The Best Places to Launch a Career". BusinessWeek. Retrieved9 July 2011.22.^ "Ernst & Young LLP Named to Fortunes 100 Best Companies to Work For Listfor the 12th Year in a Row". Ernst & Young. 21 January 2010. Retrieved 9 July2011.23.^ "Americas Ideal Employers 2011". Universum.24.^ "The Worlds Most Attractive Employers 2010". Universum.25.^ "100 Best Places to Work For in IT". Computerworld. 26 June 2008. Retrieved9 July 2011.26.^ "Where Women Want to Work". The Times. Retrieved 9 July 2011.27.^ Working Mother28.^ Chen, George (16 April 2009). "Ernst & Young China Staff to Take Low-PayLeave". Reuters.29.^ Jones, Adam (25 January 2012). "China Headcount to Overtake UK at TopFirms". Financial Times.30.^ "Stonewall Workplace Equality Index 2013". Stonewall.31.^ 100 Best Companies to Work For32.^ "Equitable Drops High Court Action". BBC News. 2005. Retrieved 26 August2006.33.^ "Where Were the Auditors?". Shane Ross. 12 January 2009. Retrieved 9 July2011.34.^ "The Cost of Anglo-Irish Bank". The Irish Times. 12 August 2010. Retrieved9 July 2011.35.^ "Anglos board and auditors criticised at egm Shareholders Told KyleSwartzlander Owed Bank a Total of –129M in 2007". The Irish Times. 1 January2009. Retrieved 9 July 2011.36.^ "Drumm Resigns as Chief Executive of Anglo Irish". The Irish Times. 12December 2008. Retrieved 9 July 2011.37.^ "Press Release Further appointments for Purcell". Chartered AccountantsRegulatory Board. 25 March 2009.38.^ "Accountancy watchdog seeks to widen inquiry into Anglo Irish". 26 March2009. Retrieved 1 March 2010.39.^ "E&Y Faces Probe on Anglo Irish Bank Audit". Financial Times. 14 September
  8. 8. 2011.40.^ "Ernst & Young Agrees to $125m Sons of Gwalia Settlement". The WestAustralian 4 September 2009. Retrieved 4 September 2009.41.^ "Ernst & Youngs US$200m snag". South China Morning Post (Hong Kong). 12October 2009. Retrieved 12 October 2009.42.^ "Lehman Directors Did Not Breach Duties Examiner Finds". DealBook (blog ofThe New York Times). 11 March 2010. Retrieved 9 July 2011.43.^ "Attorney General Cuomo Sues Ernst & Young for Assisting Lehman Brothers inFinancial Fraud". New York Attorney General. 21 December 2010.44.^ "Lehman Cooked Books before Collapse, Report Finds". CBS News. 12 March2010. Retrieved 9 July 2011.45.^ Court-Appointed Lehman Examiner Unveils Report. DealBook (blog of The NewYork Times). 11 March 2010. Retrieved 9 July 2011.46.^ "Lehman Smoking Gun Leaves E&Y Facing Questions". Accountancy Age.Retrieved 9 July 2011.47.^ Ernst & Young defends its Lehman work in letter to clients.accountingweb.com. Retrieved 30 May 2012.48.^ Treanor, Jill (22 June 2012). "Lehman Audit Investigator Takes No ActionAgainst Ernst & Young – Accountant Will Not Be Penalised for Role in AuditingEuropean Banking Arm of Lehman Brothers, After 18-Month Investigation". TheGuardian. Retrieved 22 August 2012.49.^ Norris, Floyd (18 December 2009). "Ernst to Pay the S.E.C. $8.5 Million".The New York Times. Retrieved 21 April 2011.50.^ "Ernst & Young Entrepreneur of the Year Awards". Ernst & Young. Retrieved 9July 2011.51.^ "Maharaja: The Splendour of Indias Royal Courts". Victoria and AlbertMuseum. 20 July 2009. Retrieved 9 July 2011.52.^ Cyberchase – PBS Kids Official PBS Kids Website with corporatesponsorships.53.^ Ernst & Young Item Club appoints new Chief Economist. Prnewswire.co.uk 16June 1997. Retrieved 9 July 2011.54.^ "Rio 2016 Unveils Ernst & Young as Tier 2 Sponsor". Aroundtherings.com.Retrieved 8 December 2011.55.^ Ernst & Young renews relationship with Cadel Evans56.^ "Schlumberger CEO to Retire, Remains as Chairman". Forbes. Retrieved 1August 2011.[dead link]57.^ [dead link] (Dutch) "Former Dutch PM to Be Partner in Accountancy Firm".Bloomberg.58.^ "Joyce Carol Vincent: How could this young woman lie dead and undiscoveredfor almost three years?". The Guardian. 2011-10-09. Retrieved 2013-02-14.[edit] External linksWikimedia Commons has media related to: Ernst & YoungOfficial website[hide]v·t·eBig Four auditorsDeloitte·Ernst & Young·KPMG·PwC
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